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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (27301)	7/12/2000 3:07:53 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68435

Tim, As a counter point to your positive indicators, is anyone worried that the cyclical have final started to move (ie... cyclicals move in the final stage of the bull cycle ) and as a result the DOW is finally breaking out. Right now the T's indicate the markets still have some room to run, so I am neutral right now and will wait for forward guidance from AMCC, MOT, and RBAK tomorrow. *************************************** Oil Service Stocks Rally In Expectation of Increased Spending On Exploration Oil-service equities have shot up today after BP Amoco (BPA) announced that it plans to increase capital spending to an average of $13.5 billion per year over the next three years. Analysts expect that Exxon Mobil (XOM) and Royal Dutch Petroleum (RD) will announce similar increases soon. Rising oil prices have provided these companies with increased cash to invest in oil and gas exploration. Investors are betting that oil-service companies will likely be the beneficiaries of this increased spending. The PHLX Oil Service Sector Index (OSX) is up over nine percent today in response to this news. The index also got a boost when component stock Halliburton (HAL) was upgraded from a "market perform" to a "buy" by a major brokerage firm. TO READ THE WHOLE STORY, see: schaeffersresearch.com __________________________________________________ Bernie Schaeffer: Sentiment Picture Brings Broker/Dealer Stocks' Rise Into Focus As mentioned in an earlier Market Observation, the AMEX Securities Broker/Dealer Index (XBD) moved higher from support at its long-term moving averages in late May, using the unwinding of pessimistic sentiment as the fuel for this advance. Since that time, more technical and fundamental improvements within the sector have occurred, and the pessimism on broker/dealer names is still high, allowing the index to continue its move upward. TO READ THE WHOLE STORY, see: schaeffersresearch.com __________________________________________________ Paper Rally The PHLX Forest and Paper Products Index (FPP) is rallying over four percent in Tuesday's market on the heels of a stronger-than-expected earnings announcement by International Paper (IP). As seen by the graph below, the FPP is working out of a basing pattern that has kept the index mired between 255 and 270 for the past month. By rallying from this congestion, the FPP appears to be breaking out from a double bottom that is mirrored by a consolidation period in February and March. The FPP will be faced with double-barreled resistance from its 10-week and 20-week moving averages. These two trendlines reside between the 285 and 290 levels. TO READ THE WHOLE STORY, see: schaeffersresearch.com